As an asset manager for pension funds, we support our clients in fulfilling their primary task of providing a stable and good pension for their participants, now and in the future. Our clients attach great value to responsible investment. We support them in this regard, because we are convinced that financial and social returns go hand in hand.
As a long-term investor we have a long investment horizon; investments must continue to yield returns over time and enable our clients to pay good pensions. Companies that give due consideration to their surroundings can continue to be profitable in the future and provide positive investment returns over the long term. Moreover, these companies contribute to a sustainable, liveable world and as such to a valuable future for pension participants. This is why responsible investment forms an integral part of our investment approach. We take environmental, social and governance (ESG) factors into account in all of our investment decisions. Also, we critically assess our own behaviour, as well as that of the entities in which we invest or with which we work. Within our mandate we therefore look beyond financial returns alone and aim at making a tangible positive contribution to the sustainable development of the world at large.
Although there has been enormous growth in prosperity over the past century, stability and economic development are increasingly threatened by global issues. These include climate change, the scarcity of natural resources such as water and minerals, rising food prices and income inequality. This will impact future investment results. Sustainability and viability are therefore key to our activities over the long term.
To safeguard this, PGGM has developed three beliefs for Responsible Investment:
- Responsible investment pays off: PGGM firmly believes that sustainability factors materially influence the risk-return profile of the investments and that this influence will steadily increase in the future.
- No good and stable return in the long term without sustainable development: PGGM firmly believes that sustainable development is necessary in order to generate good and stable investment returns for our clients in the long term.
- The driving force of capital: PGGM firmly believes that by leveraging the driving force of investments for our clients it can and must make a positive contribution to sustainable development through its investment decisions.